forex-comparic-photo-144-of-564-300x212On Monday price of crude oil opened with bullish gap. It soon turned out that the demand overreacted with optimism and as a result, starting from Monday trading we observed prices sliding down.

Oil production up

OPEC said on Wednesday that if agreement on the reduction of production by oil producers want be implemented in 2017 on the market will be excess supply of oil. In turn in the monthly report, OPEC pointed out that November daily production was on level 33.87 million barrels and that is an increase of 150000 in relation to October .Rosnąca produkcja ropy.

Fed didn’t support commodities

The second factor, which on Wednesday had an impact on drop in oil prices was hike in interest rates announced by Fed. Following the FED decision  raw materials and metals have lost their value, and gains US dollar. This is particularly visible on EURUSD, which today has broken very strong resistance at 1.0500.


Brent oil on Monday tested the highest level in 1.5 years 57.50. Right after that began a dynamic exit from this price. Yesterday was tested key support at 53.50 and so far bulls were able to defend it. However, if demand fails to return above 55.00 resistance we can expect that these important support at 53.50 will be broken. Further supports are positioned at levels: 52.80, 51.00, 48.50, 45.40.

Oil Brent H4
Oil Brent H4


The situation is worse in the Crude oil chart. Significant support at 51.50 was broken yesterday. If the price soon will not be able to get back above this level (which is now not likely) than in near future should be tested support in the area of 49.30 – 49.00.

OIL Crude H4
OIL Crude H4
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